1 The definitions in this section apply in this Schedule.
- average tax rate
average tax rate[Repealed, SOR/2000-337, s. 7]
child means a child of the marriage or a child who
(a) is under the age of majority; or
(b) is the age of majority or over but is unable, by reason of illness, disability or other cause to obtain the necessaries of life. (enfant)
household means a spouse and any of the following persons residing with the spouse
(a) any person who has a legal duty to support the spouse or whom the spouse has a legal duty to support;
(b) any person who shares living expenses with the spouse or from whom the spouse otherwise receives an economic benefit as a result of living with that person, if the court considers it reasonable for that person to be considered part of the household; and
(c) any child whom the spouse or the person described in paragraph (a) or (b) has a legal duty to support. (ménage)
- taxable income
taxable income means the annual taxable income determined using the calculations required to determine Taxable Income in the T1 General form issued by the Canada Revenue Agency. (revenu imposable)
2 The comparison of household standards of living test is as follows:
Establish the annual income of each person in each household by applying the formula
A - B - C
- is the person’s income determined in accordance with sections 15 to 20 of these Guidelines,
- is the federal and provincial taxes payable on the person’s taxable income, and
- is the person’s source deductions for premiums paid under the Employment Insurance Act and contributions made to the Canada Pension Plan and the Quebec Pension Plan.
Where the information on which to base the income determination is not provided, the court may impute income in the amount it considers appropriate.
Adjust the annual income of each person in each household by
(a) deducting the following amounts, calculated on an annual basis:
(i) any amount relied on by the court as a factor that resulted in a determination of undue hardship, except any amount attributable to the support of a member of the household that is not incurred due to a disability or serious illness of that member,
(ii) the amount that would otherwise be payable by the person in respect of a child to whom the order relates, if the pleading of undue hardship was not made,
(A) under the applicable table, or
(B) as is considered by the court to be appropriate, where the court considers the table amount to be inappropriate,
(iii) any amount of support that is paid by the person under a judgment, order or written separation agreement, except
(A) an amount already deducted under subparagraph (i), and
(B) an amount paid by the person in respect of a child to whom the order referred to in subparagraph (ii) relates; and
(b) adding the following amounts, calculated on an annual basis:
(i) any amount that would otherwise be receivable by the person in respect of a child to whom the order relates, if the pleading of undue hardship was not made,
(A) under the applicable table, or
(ii) any amount of child support that the person has received for any child under a judgment, order or written separation agreement.
Add the amounts of adjusted annual income for all the persons in each household to determine the total household income for each household.
Determine the applicable low-income measures amount for each household based on the following:
Household Size Low-income Measures Amount One person 1 adult $10,382 Two persons 2 adults $14,535 1 adult and 1 child $14,535 Three persons 3 adults $18,688 2 adults and 1 child $17,649 1 adult and 2 children $17,649 Four persons 4 adults $22,840 3 adults and 1 child $21,802 2 adults and 2 children $20,764 1 adult and 3 children $20,764 Five persons 5 adults $26,993 4 adults and 1 child $25,955 3 adults and 2 children $24,917 2 adults and 3 children $23,879 1 adult and 4 children $23,879 Six persons 6 adults $31,145 5 adults and 1 child $30,108 4 adults and 2 children $29,070 3 adults and 3 children $28,031 2 adults and 4 children $26,993 1 adult and 5 children $26,993 Seven persons 7 adults $34,261 6 adults and 1 child $33,222 5 adults and 2 children $32,184 4 adults and 3 children $31,146 3 adults and 4 children $30,108 2 adults and 5 children $29,070 1 adult and 6 children $29,070 Eight persons 8 adults $38,413 7 adults and 1 child $37,375 6 adults and 2 children $36,337 5 adults and 3 children $35,299 4 adults and 4 children $34,261 3 adults and 5 children $33,222 2 adults and 6 children $32,184 1 adult and 7 children $32,184
Divide the household income amount (Step 3) by the low-income measures amount (Step 4) to get a household income ratio for each household.
Compare the household income ratios. The household that has the higher ratio has the higher standard of living.
- SOR/97-563, ss. 10, 11
- SOR/2000-337, s. 7
- SOR/2005-400, s. 6
- SOR/2007-59, s. 4
- Date modified: